Re: Calculating royalties

[Ric Richardson]

Mate I don't do much licensing, but there is a book called license your invention by NOLO press that is pretty good... I have used it... the most important concept to get your head around is the GMAR which is the Gross Minimum Annual Royalty... ie the amount thast has to be paid whether or not they sell antything... this is where the licensee shows their true colors in dealing with you...

Royalties range in my experience from 0.03% of gross sales to 8% depending on how dependant the full app is on your technology. Remeber most companies only make 20% profit so if you take 8% of gross you are taking 40% of the companies profit on that product... you have to be realistic.

On Tue, Aug 21, 2012 at 1:14 AM, Slide588 <hill...@gmail.com> wrote:

Hi Ric

I work in the mining industry and have developed two useful mining scheduling packages and a development environment.  I'm considering introducing the software at my current employer and they've agreed to pay me a royalty for its use and sale via a software licensing agreement.  I've taken care of ownership via an IP lawyer and agreement.  But what to charge?  Where can I get some ideas on this?  Are there standard amounts or ways of calculating this?

Thanks, much appreciated.

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